Partnership Returns

[McWord]

Client has never filed a partnership return.  It's been ten years and all income and expenses have been split (between the two partners) and reported on Schedule C of their personal returns.  I would like to file their initial return, which would have been their first return, as normal and as a final return.  Is this acceptable?

[George4Tacks]

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

[McWord]

Actually, I am a tax professional searching for a way to assist my client the best way I can.  Although the client has filed their business taxes on their individual returns for all years since 2010 (except 2019), I was thinking of filing a no-activity (and final 1065) for 2010.  Do you think that would pass muster at the IRS?  That way, the partnership will close and their business activities are reported on Schedule C's.

The alternative, of course, is to file ten 1065's and amend every individual tax return (for both partners) for those same ten years.  A total of 30 tax returns.  That seems to me an inordinate amount of work for all involved.  Any suggestions/advice would be most appreciated!

Thanks again,

mitch

[sjrcpa]

Was it really a partnership?

Why stir up the hornet's nest now?